THE region's biggest union has halted legal action against a furniture firm after it agreed to recognise the representation rights of its staff.

Ness Furniture had opposed moves by the General, Municipal and Boilermakers Union (GMB) to have members collectively recognised.

The GMB took the company to an independent arbitration panel under an amendment, brought in by the Labour Government, to the Employment Relations Act.

Under the law, a company must give recognition if more than half the workforce is affiliated to a union body. If the number of union members is disputed, the union can ask the Central Arbitration Committee to conduct a secret ballot which can, in turn, lead to a firm being forced to recognise the union.

Ness employs more than 100 staff in plants at Croxdale and Newton Aycliffe, in County Durham. No one was available for comment at the firm yesterday.

Derek Cattell, regional organiser for the GMB, said: "This was the first ever application by our union in the northern region to use this legislation.

"We have now withdrawn the claim because we reached agreement with the company which both sides are comfortable with."